Like many other aspects of running a business, health care costs can become stressful. And when it comes to decisions and strategies that involve small business health insurance, controlling health care costs often tops the list. Fortunately, the guidance of experienced health insurance agents can be helpful in this area.
Many small business owners choose to offer healthy options to their full-time employees because they are truly concerned about the health of their employees. Offering health insurance in the form of small group health plans and other coverage options is one of the best ways to help them.
Small business and affordable health insurance plans
Shopping for small business health insurance is similar to what individuals must do to find and obtain coverage. However, unlike individuals, business owners are not obligated to pay all employee premiums, for example. But it turns out that nearly two-thirds of small businesses do, for one health insurance coverage.
One way to save money initially is to choose HMO plans.
according to article In Forbes Advisor,
“Small businesses pay less for health maintenance organization (HMO) plans than do other types of health plans. The Kaiser Family Foundation found that small businesses pay an annual median of $6,060 for individual HMO coverage compared to $6,910 for a preferred provider organization plan ( PPO).
An alternative to offering a traditional group health insurance plan is to set up what are known as health reimbursement arrangements (HRAs).
as a website at HealthCare.gov ExplainAnd
Some small employers—generally those with fewer than 50 employees who do not offer a group health plan—can contribute to their employees’ healthcare costs through a Qualified Small Employer Health Compensation Arrangement (QSEHRA).
QSEHRA allows small employers to offer non-taxable reimbursement of certain health care expenses, such as health and coinsurance premiums, to employees who maintain minimum basic coverage, including an individual market plan. In many states, QSEHRAs allow small employers to provide their employees with additional plan options without managing group health plan coverage.”
Consulting with health insurance brokers can be critical to making decisions of this scope. Make sure that the agent or broker you choose to work with has experience in small business insurance and that their agents are properly licensed.
Small business spending on health and controlling healthcare costs
While there are large aspects of health care costs and spending that cannot be negotiated or avoided, there are some steps a small business can take to help control health spending and healthcare costs for their company.
there many ways Small businesses can control some of their company’s healthcare costs.
Here are some options to consider to manage your healthcare costs while still providing the best possible benefits to your employees:
- Evaluate carrier networks: Larger networks often translate to lower costs in the long run. Find an alignment of your service provider’s priorities to align with your business priorities. In other words, try to provide the best possible network of care while reducing costs for you and your employees.
- Discover premium offset plans. according to Remp FinanceAfter paying premiums out of pocket for a number of years, it may be possible to pay the premiums according to the current values of your policy.
- Offer compatible health savings account plans. Also known as high-deductible health plans, or HDHPs, they’re often set up alongside health savings accounts, or HSAs.
- Providing health reimbursement arrangements. HRA is an employer-funded health benefit plan that reimburses employees for qualified medical expenses. These expenses may include co-payments, deductibles, out-of-pocket costs, and individual health insurance premiums. HRAs are tax benefits for both employers and employees.
- Benefit from direct primary care. according to VeryWellHealth.comAnd
Direct Primary Care (DPC) is a business model that allows primary care physicians to offer their services directly to their patients — without an insurance company in the middle — for a monthly or annual fee. The membership fee allows the patient to access a variety of primary care, including consultations and exams and coordinating care and certain lab services, without paying any additional fees at the time the service is provided.”
While small businesses can work directly with a health insurance company, oftentimes, tapping into their state’s health insurance market can provide them with more cost-effective options.
For example, by taking advantage of the Small Business Healthy Options Program (SHOP), most small business owners can claim a tax credit advantage known as Small business healthcare tax credit.
This is a great strategy for lowering and controlling healthcare costs for small businesses.
JC LEWIS Insurance Services can help you cover your healthcare costs
We want to be your preferred insurance partner and supplier.
We have over four decades of experience and continue to provide high quality health insurance plans. JC Lewis Insurance Services only works with leading health insurance companies that are licensed to do business in the states in which we operate.
As a family owned and operated health insurance agency located in Santa Rosa, California, we are a small business. This means that we understand the specific needs and challenges that small business owners face. In addition to being specialists in finding and administering affordable health insurance plans for small businesses, we are also licensed and approved by every insurance company we represent.
So, whether you’re considering small group health insurance for you and your employees or are simply looking to make changes to your existing plan, we understand that you likely have questions and concerns.
Your questions about health coverage insurance are always welcome, and you can be confident that we’ll help you find the right solution for your needs.
JC Lewis – Make us your partner of choice to help you make the right decision for your health coverage needs.